Technology

How Business Can Use New Technology to Increase Organization’s Profitability

Today, advancements in technology have increased the demand and role of information in every aspect of human life. Business has become dynamic and more vulnerable to technological changes and innovation. It is doubtless that technology continues to influence business in various ways and managers are taking this advantage to increase revenue (Agbolade 101). With incorporated information technology systems, companies gain competitive growth and success.

To achieve this competitive advantage, organizations re-evaluate their efficiency with the use of modern information systems. Businesses that embrace technological changes experience continuous growth and sustainable profits (Olugbode et al. 11). However, there are many unanswered questions as to how new technology adds value to a business. Thus, many researchers endeavor to debunk myths from facts on how organizations record high profits with this technology (Hitt and Brynjolfsson 121).

Importantly, research on the economic value of new technology in business gives opposing findings. In their research, Hitt and Brynjolfsson seek to find out the commercial value of new technologies on business organizations (122). This article is relevant to this analysis since it offers empirical evidence through analysis of firms, which embrace these technologies. It also gives hypothesis on using IT interventions to improve organizational profits.

In particular, new technology forms part of factors of production, and can be used for research and development. Through technology, an organization makes unique brands, which guarantee high profits. In cases where there are business barriers, technology can make an organization realize supernormal profits (Hitt and Brynjolfsson 123-124).

Olugbode et al. (11-16) also offers relevant findings on the issue at hand. The paper is a case study on Beale and Cole, which experienced profits because of utilization of ICT systems. However, the firm recorded declining profits even though it was applying technology. From an evaluation of the company’s performance, the need to integrate new technologies and face out old information systems was evident.

To this effect, the company adopted business IT interventions to streamline operations, increase profitability, and increase efficiency (Olugbode et al. 12). Thus, new technologies have the ability to make a company realize higher profits. For example, the company acquired an accounting system from Virtual Private Network to cut down on operation costs, which helped to make profits (Olugbode et al. 11-13).

Agbolade’s (101-107) further agrees with the fact that the use of IT concepts has helped many banks to make huge profits through increased efficiency. IT has widely altered operations in banking because of high speed and top quality in service delivery (Agbolade 102). A good example is how the use of biometric recognition systems controls fraud.

With mobile tech, consumers make transactions with a lot of ease, which leads to higher revenue for banks (Agbolade 103-104). IT reduces chances of making errors and the risk of fraud. Additionally, banks use computer software to improve speed and quality of services delivered to customers. Because of this, banks serve more clients leading to increased profits. Technology also allows flexibility at place of work, encourage teamwork and good customer relations (Agbolade 106).